This graph shows the marginal costs and marginal benefits associated with roadside litter clean up.Assume that the marginal cost and marginal benefit curves slope in the usual directions.
Refer to the information given above.A state initiative requiring towns to spend at least $20 per day on litter removal would be __________ because __________.
A) efficient;any and all reductions in litter are justified
B) inefficient;the marginal costs exceed the marginal benefits
C) inefficient;$20 is insufficient to remove all of the litter
D) efficient;it solves the inefficiency in the market created by the negative externality

Question

This graph shows the marginal costs and marginal benefits associated with roadside litter clean up.Assume that the marginal cost and marginal benefit curves slope in the usual directions. 
Refer to the information given above.A state initiative requiring towns to spend at least $20 per day on litter removal would be __________ because __________.
A) efficient;any and all reductions in litter are justified 
B) inefficient;the marginal costs exceed the marginal benefits 
C) inefficient;$20 is insufficient to remove all of the litter 
D) efficient;it solves the inefficiency in the market created by the negative externality

Quizplus · Accepted Answer

At $20,the marginal cost of removal is greater than the additional benefit.

This Graph Shows the Marginal Costs and Marginal Benefits Associated